Identify the correct option. Full form of 'ITC' in Indian Tax Context.
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : Input Tax Credit
Input Tax Credit (ITC) refers to the mechanism under the Goods and Services Tax (GST) system in India where taxpayers can offset the tax they have paid on inputs against the tax they are liable to pay on outputs. This helps avoid double taxation and is a key feature of GST.